Recently released figures show that London property prices rose by 11% over the course of 2015. If this wasn’t enough to confirm the current strong state of the property market, it was also confirmed that property prices across the capital have risen on average by an incredible 83% over the last six years. While some experts take the view that this rate of growth is unsustainable and are warning that the market bubble will burst, the seemingly ever increasing levels of demand for property in London would suggest that this is not the case.
Many wonder how property sales still remain feasible in the light of such high value growth figures. The answer to this lies in the year-on-year improvement and growth in our economy over the highlighted six year period. Strong performance in the economy has allowed mortgage lenders to offer low interest rates. With several leading financial institutions offering mortgages with interest rates as low as 1.44%, in a sense buying property in London has actually become easier, despite the real term rise in prices.
In this sense, the dynamics of London’s property market are perfectly poised for sustainable growth. Although obviously dependent on the overall performance of the economy, at this stage we have every confidence that the current strong and balanced performance will continue. The year to year growth in value across the city is excellent news for those who have bought into London investment properties, while property remains affordable due to a highly competitive mortgage interest rate market.
We know that the press has featured a fair few expert articles suggesting that the current market has made property unaffordable, particularly in London. However, if this really was the case then it stands to reason no sales would be going through, and this is not what we are experiencing. Ultimately people still want and need to buy houses, whether it is to live in or to use for investment purposes. Our peerless understanding of the London property market, and our approach of focusing exclusively on your specific requirements, means we can help you towards success with your property investment in Enfield or any other part of the capital.